There can be no argument against the government’s intention to overhaul the welfare system and bring all those capable of working into the job market.
New Zealand has since long been a state that has supported beneficiaries, many of who have the mental and physical capability to be employed but refuse to do so, simply because the government hands out ‘easy money.’ Billions of dollars are spent every year on supporting those who can be employed or self-employed.
The situation has to clearly change.
We should however ensure that those in need of help and support – both financial and physical – receive them without interruption.
The need for revenue has encouraged cash-strapped state and local governments in the US, UK, Canada and Australia to revisit their welfare laws and reform them to meet the existing and emerging challenges. None of the so-called rich countries can afford to handout benefits incessantly.
International experts say that our welfare system has allowed too many young people to stay out of the employment market. Our education system is failing to deliver, with the number of dropouts increasing, at least among some sections of the society. Our training programmes do not reach out to those in need.
The result is obvious – the gap between skilled and unskilled labour is widening.
It is time to introduce the concept of ‘Right to Work.’
In Britain for instance, more than one million young people are unemployed, the highest number since the mid-1980s. Keen both to cut the welfare bill and to avoid the depressed future wages that may result from early unemployment, the government has introduced an ambitious programme of reform to get youngsters off welfare and into work.
A key part of it is ensuring that no one loiters on the dole for long; ministers are keen to avoid what happened after the early-1980s recession, when unemployment persisted in some parts of the country for a long time after the economy began to improve.
To help young people into work, ministers had persuaded employers, including bakery chains, bookshops, burger bars and supermarkets, to take on unemployed youth, who receive work experience but no pay, with the prospect of a proper job for those who shine. Some 35,000 youngsters participated last year; half found paid work soon after finishing the scheme.
The idea of getting young adults used to showing up for work is popular with voters: according to a ‘YouGov’ poll published in February, about 60% of people supported the initiative. Equally attractive was the option of compelling them to work: under the existing arrangements, youngsters could choose whether or not to accept a place, but if they dropped out after the end of the first week, they stood to lose up to a fortnight’s benefits.
There is no guarantee that such a scheme will work in New Zealand.
However, it is time to promote the ‘Right to Work’ campaign in a form that would be acceptable to employers and to those who are capable of being employed.